Affordable locations across Australia where your deposit might go further.
If you’ve been watching house prices climb while your savings grow (painfully) slowly, you’re not alone. For many first home buyers, the path to home ownership feels harder to navigate than ever, with cost-of-living pressures reshaping what’s affordable and where.
Even with double digit growth in prices, cities like Perth still remain affordable compared to other parts of the country. Picture: Getty
The good news? There are still cities and suburbs across the country where genuine opportunity exists. With the right support, such as home loan options from lenders like Ubank that don’t insist on a 20% deposit, getting into the market may be more achievable than you think.
Where price growth doesn’t mean sky high entry costs
Let’s start with what the data is telling us.
According to realestate.com.au insights, cities like Perth, Adelaide and Darwin are leading for price growth, while still offering comparatively affordable entry points for buyers.
In 2025:
- Perth saw a 17.5% annual increase in dwelling prices, with a median of $962,000
- Adelaide rose 13.8%, with a median of $916,000
- Darwin increased 14.1%, with a median of just $580,000
Compared to Sydney’s median of around $1.2 million, these markets are attracting attention from first home buyers looking to balance growth potential with a more manageable starting price.
Suburbs worth adding to your shortlist
Based on demand, price growth, and access to entry-level homes, these six areas are worth putting on your shortlist.
These may not be on every first home buyer’s radar just yet, but strong interest per realestate.com.au listings suggests momentum is building.
Three top picks for houses:
- St Marys, NSW, with strong infrastructure links and growing interest
- Rocklea, QLD, a sleeper suburb in Brisbane’s south
- Hillcrest, QLD, a western suburb in the City of Logan
Three top picks for units:
- Darlington, NSW for inner-city access for under $1.2M
- Herston, QLD, popular with young professionals
- Graceville, QLD, known for lifestyle appeal for a lower entry price
Buying sooner starts with rethinking your deposit
For years, the 20% deposit has been one of the biggest gatekeepers to buying property. But that’s starting to change.
Ubank is helping remove a major barrier for first home buyers by offering eligible customers the option to purchase with a 10% deposit and no Lenders Mortgage Insurance (LMI)*, a shift that could significantly shorten the journey from saving to owning.
Ubank are rethinking the traditional 20% deposit, eliminating what has historically been a big barrier. Picture: Getty
For example, if you’ve saved $80,000, that’s a 10% deposit on an $800,000 home. Under the traditional 20% rule, you’d need to double that amount.
With Ubank’s 10% deposit and no LMI loan*, that same buyer could be ready to act sooner, without years of extra saving or added costs.
“With a 10% deposit and no LMI, that buyer could be ready to go now,” Ray Jokhan, Chief Lending Officer at Ubank says.
“And that’s often the difference between staying on the sidelines or stepping into the market.”
A different way to get into the market
As housing affordability shifts, many first-time buyers are changing their playbook.
Rentvesting, buying where you can afford and renting where you want to live, has moved from niche strategy to mainstream option.
Take a couple earning a combined $170,000 who rent in Sydney’s inner west for work and lifestyle reasons. Buying where they live would stretch their budget, so instead they purchase a $650,000 apartment in a growth suburb interstate using a 10% deposit and no LMI through Ubank*.
Their deposit comes to $65,000, rather than the $130,000 required under a traditional 20% deposit. The property is rented out to help offset repayments, while they continue renting where it suits them.
Keep in mind that Interest Only loans (popular with investors) still require a 20% deposit at Ubank, so consider if rentvesting will suit your budget while making principal and interest repayments.
“We’ve seeing more and more customers take this approach” says Ray.
“Buying in a high-growth area while renting elsewhere lets them get into the market without giving up their lifestyle,” he adds.
Ready to start your search?
For aspiring homeowners, 2026 doesn’t have to be about compromise. It’s about being strategic.
There are emerging suburbs with strong growth potential and lending options that make the upfront costs feel far less daunting than they once did.
Adelaide remains an affordable entry point for first home buyers. Picture: realestate.com.au
A few smart choices now could be all it takes to turn browsing into buying.
“Don’t assume you’re priced out because there are more ways than ever to turn property goals into reality,” says Ray.
“With the right location and the right support, first home buyers can absolutely get into the market, and often sooner than they think."
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